Equitable charge meaning

This Checklist examines how easements come into being and whether they must, or may, be entered on the register at HM Land Registry. It addresses the following principal topics: Does an easement exist? Can it amount to a legal easement? Was the easement made by express grant? Is the express right set out in a deed of grant or a transfer? Is the right included within a lease? Has the easement arisen by implied grant? Has the easement arisen by presumed grant? Is the right merely equitable? Is the easement an overriding interest? Rights distinct from easements An application to HM Land Registry to register an easement may need supporting evidence of third party consents, or proof of compliance with a restriction on title. These matters are not explored in detail in this Checklist; see Practice Notes: Mortgages and land—dealings with land subject to a mortgage or legal charge, and Land registration—restrictions on title under...

Original news Banwaitt v Dewji and another [2015] EWHC 3441 (Ch) What issues did this case raise? This decision will interest practitioners advising judgment creditors with a charging order against a debtor’s share in jointly owned property, and anyone dealing with security over beneficial interests in land more generally. The central issue was whether a married couple, as co-owners, could have a charging order removed from the title by the wife buying the husband’s stake. The claimant had secured a substantial judgment which the debtor failed to satisfy. A charging order was then obtained over the debtor’s beneficial interest in the family home. Thereafter, the debtor and his wife transferred the property into her sole name for a modest sum. She argued the order no longer bound the title—maintaining it had been ‘overreached’ under sections 2 and 27 of the Law of Property Act 1925. The debtor tendered that sum to the claimant. However, the debtor had not obtained the claimant’s agreement in advance to the disposition and, in...

In this issue: Commercial real estate finance Leasing property Property management Residential tenancies Statutory compliance Property in Wales Additional property updates this week LexTalk®Property: a Lexis®Nexis community Daily and weekly news alerts New and updated content Trackers Commercial real estate finance Deliberate and unauthorised deed alteration renders legal charge void In Boult v Together Personal Finance Ltd [2026] EWHC 809 (Ch), the Chancery Division overturned the County Court at Cardiff, finding that the rule in Pigot’s Case rendered a legal charge void. The appeal turned on whether a unilateral, material change to a deed made after execution—without the other party’s knowledge or consent—invalidates it under the 400‑year‑old Pigot principle. The respondent, Together Personal Finance Limited, had lent money to the appellant, Ms Myranna Boult, secured against her property, and later commenced possession proceedings. Ms Boult maintained that the charge had been amended in manuscript post‑execution to incorporate an additional property without her...

Santander UK Plc v Fletcher & Anor [2018] EWHC 2778 (Ch) Ashley Fletcher was found guilty of fraud, the target being his mother, Mrs Paula Fletcher. Because of his deception, Mrs Fletcher’s property was charged to Santander for a loan far greater than he had led her to expect. He told her the borrowing would be in the region of £32,000, whereas the facility actually approached £120,000. Nothing had been repaid; by May 2017 the outstanding balance was around £160,000 and still climbing. Santander therefore issued possession proceedings under the mortgage. At trial, the judge upheld Mrs Fletcher’s contention that the mortgage should be rescinded for undue influence, of which Santander had sufficient notice to put it on enquiry (see Royal Bank of Scotland v Etridge (No 2) [2001] All ER (D) 156 (Oct)). He decided that, provided she returned to the bank the amount she had believed she was borrowing (ie £31,250), Santander could not enforce the mortgage as against her. Nonetheless, she remained at risk of losing...

This Practice Note outlines: the various forms of share security the principal enforcement options available to security holders practical factors for security holders when choosing appropriate enforcement mechanics further considerations for security holders depending on the context Forms of share security There are three primary categories of security that can be created over shares: (a) a charge, (b) a legal mortgage and (c) an equitable mortgage, each considered below. Historically, a pledge over shares was also possible. A pledge involves delivering possession of an asset as security for the repayment of a monetary debt. This was feasible where bearer shares existed. However, from 26 May 2015, under section 779 of the Companies Act 2006, companies have been prohibited from issuing bearer shares. Holders of bearer shares were granted until 26 February 2016 to surrender them and convert into registered shares (for further information, see News Analysis: Bearer shares—how to avoid a grizzly ending). Charge A charge arises from...

FORTHCOMING CHANGE: Following the Autumn Budget 2024, the government instructed an independent examination of the loan charge, commissioning a review. Announced on 23 January 2025, its remit was to identify the barriers preventing people within the scope of the loan charge who have not already settled and paid their tax liabilities in full from reaching a final resolution with HMRC, and to outline recommendations on how they might be encouraged to settle with HMRC (see News Analysis: Autumn Budget 2024—Independent review of the loan charge). To support the review process, a call for evidence, targeted at those still subject to the loan charge (and their advisers), was issued on 28 March 2025. The Final Report of the review, together with the government response, was released at Budget 2025 on 26 November 2025. It concluded that the loan charge had failed as a mechanism to resolve the tax affairs of affected taxpayers, largely because it was not coupled with a settlement strategy that was proportionate to the extraordinary legislation enacted,...

In commercial finance, shares are often pledged as security for a loan. Practice Note: Taking security over shares sets out the general approach to securing interests over shares. This Practice Note concentrates on issues specific to security over shares held in CREST, the UK’s clearing and settlement system. It explains: the characteristics of registered shares and the distinction between certificated and uncertificated shares what CREST is and the ways shares can be held within CREST methods of taking security over shares held in CREST specific issues arising when securing shares in CREST and key points for documenting that security perfection and priority considerations for CREST share security how to enforce security over CREST-held shares Where a settlement bank takes security over CREST-held shares, different considerations apply; these fall outside the scope of this Practice Note. For more information, see commentary: CREST payments: Tolley’s Company Law Service [C8041]. Types of shares Registered shares With bearer shares abolished,...

DEFINITIONS The following definitions are to be inserted, and the definitions of Related Rights, Secured Assets, Shares and Specific Shares are to be removed therefrom, in Clause 1.1 (Definitions) of Precedent: Share charge (granted by the borrower): single company chargor—bilateral—specific monies...

Section 23 of the Land Registration Act 2002 (LRA 2002) states that: The owner’s powers concerning a registered estate comprise: authority to carry out any disposition allowed by the general law for an interest of that nature, except a mortgage by demise or sub-demise; and authority to charge the estate at law to secure the payment of money. At first glance, these powers appear extremely broad; nevertheless, it is evident that they are qualified by a constraint relating to the ability to grant charges over the land...

Proceeding on the basis that the legal mortgage is valid and duly executed, the only flaw is a failure to register. The question concerns what remedies are available where a mortgage remains unregistered. Where a valid charge is created by way of legal mortgage but not entered on the register, it takes effect in equity as an equitable mortgage...

A buyer for value of land burdened by a legal or equitable rentcharge in favour of a charity will take subject to that rentcharge, unless: the rentcharge is registrable as a land charge and is void against him for want of registration (see sections 2 and 4 of the Land Charges Act 1972; section 24 of the Law of Property Act 1969; section 2(1)(i) of the Law of Property Act 1925 (LPA 1925)); the sale is made in exercise of powers under the Settled Land Act 1925 (SLA 1925) and the rentcharge is capable of being overreached on such a sale (see SLA 1925, s 72; LPA 1925, s 2(1)(i)); or for an equitable rentcharge, the purchaser had no notice of it (Re Alms Corn Charity, Charity Comrs v Bode). Also note that, depending on the date of the rentcharge, the Rentcharges Act 1977 provides that, since 22 August 1977, only certain types of rentcharges can be created (Permitted Rentcharges). For more...